Home Business December fuel demand rises to 11-month high

December fuel demand rises to 11-month high

Diesel gross sales slip from year-earlier interval for a second straight month dampening total consumption.

India’s fuel demand rose sequentially for the fourth straight month in December because the resumption of financial exercise took consumption to a 11-month high. Still, demand was about 2% decrease than pre-COVID ranges.

Total demand for petroleum merchandise in December fell to 18.59 million tonnes, from 18.94 million tonnes a 12 months earlier, provisional knowledge revealed by the oil ministry’s Petroleum Planning and Analysis Cell present.

Fuel consumption, nevertheless, posted a month-on-month improve for the fourth straight month, helped by reviving transportation and enterprise exercise.

India had consumed 17.86 million tonnes in November.

The consumption in December was the very best since January 2020.

While petrol had reached pre-COVID ranges in September, diesel consumption returned to regular in October. However, demand for the primary transportation fuel declined once more in November and December.

Diesel slips once more

Diesel demand, which had soared 7.4% year-on-year in October, dropped 6.9% in November and by 2.7% in December to 7.18 million tonnes. Month-on-month, the demand barely improved from 7.04 million tonnes.

Fuel demand had slumped by 49% in April after a nationwide lockdown, imposed to curb the unfold of the novel coronavirus, shut industries and took most automobiles off-road.

The 69-day nationwide lockdown was adopted by native and State-level restrictions. The curbs have eased solely slowly and in phases, whereas localised restrictions in containment zones stay.

The onset of the festive season had fuelled an increase in consumption, however public transport is just not again to regular ranges but, as faculties and academic establishments proceed to stay shut in most elements of the nation.

Demand for naphtha, which is used as an industrial fuel for producing electrical energy and producing petrochemicals, fell 2.67% to 1.23 million tonnes in December.

Bitumen, LPG

But, consumption of bitumen, utilized in street development, jumped by 20% to 7,61,000 tonnes.

LPG — the one fuel that confirmed progress even through the lockdown interval on the again of the federal government giving free cooking gasoline to the poor — was 7.4% greater at 2.53 million tonnes.

Aviation turbine fuel or ATF gross sales fell 41% to 4,28,000 tonnes as most airways are but to resume full operations. However, on a month-on-month foundation, it improved by 13.5%.

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